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FINRA Board of Governors Appoints Sam Deshpande as Newest Governor

July 7, 2021
Volume 27

 
 
guidance

Guidance
  • Regulatory Notice
  • UPC Advisories
upcoming

Upcoming Deadlines and Effective Dates
  • FINRA Requests for Comment
  • SEC Requests for Comment
  • FINRA Elections
education

Education and Compliance Programs

The FINRA Board of Governors has appointed Sam Deshpande as a new public Governor. Deshpande is Chief Information Officer for Humana, a U.S. health insurance company. Prior to his work at Humana, Deshpande spent 17 years at Capital One in key leadership positions, most recently as Business Chief Risk Officer for the U.S. and international card businesses. His term on the FINRA Board begins immediately, and he will join the Board at its upcoming Board of Governors meeting on July 21-22.
 



FINRA Contact System moving to FINRA Gateway July 15. The FINRA Contact System (FCS) has been redesigned and will move to Contacts in FINRA Gateway on July 15, 2021. FCS will no longer be accessible through Firm Gateway after the transition. The redesign includes several updates requested by firms including: a reduced number of requested roles, the addition of the Senior Investor Inquiries role, prominent placing for FCS Reports and historical contact information. The look and feel of FCS has also been updated to be consistent with FINRA Gateway. Visit FINRA.org for more information.
 

 Guidance

FINRA Announces Updates to the Interpretations of FINRA’s Margin Rule Regarding Minimum Equity

Regulatory Notice 21-24 announces, effective immediately, clarifications of interpretations of the FINRA margin rule regarding minimum equity requirements in FINRA Rule 4210(b).

UPC Advisories

The following UPC Advisories were published in the last week:

  • UPC #46-21: CTO Realty Growth Inc (CTOPP)
  • UPC #47-21: Hermitage Offshore Services, Inc. (HOFSQ)
  • UPC #48-21: Hertz Global Holdings, Inc. Common Stock (HTZGQ)
  • UPC #49-21: Hospitality Investors Trust, Inc. (HPITQ)
  • UPC #50-21: New York Mortgage Trust Inc (NYMFP)
  • UPC #51-21: The Hertz Corporation (HTZGQ)
  • UPC #52-21: General Moly, Inc. (GMOLQ) 
  • UPC #53-21: RenaissanceRe Holdings Ltd. (RNRRV)

 Upcoming Deadlines and Effective Dates

FINRA Requests for Comment

FINRA is requesting comment on potential enhancements to its short sale reporting program in Regulatory Notice 21-19. FINRA is considering: (1) modifications to its short interest reporting requirements (Rule 4560); (2) a new rule to require that participants of a registered clearing agency report to FINRA information on allocations to correspondent firms of fail-to-deliver positions; and (3) other potential enhancements related to short sale activity. The comment period expires August 4, 2021.

FINRA issued Special Notice 6/30/21 seeking input from firms, investors, investor advocates, academics and other stakeholders who are knowledgeable about investor behavior regarding the most effective methods for educating newer investors. Comments will help inform and guide the investor education initiatives FINRA and the FINRA Investor Education Foundation undertake.
The comment period expires August
 30, 2021.

SEC Requests for Comment

The SEC requests comment on FINRA’s proposal to amend FINRA Rule 1240 (Continuing Education Requirements). The proposed rule change also makes conforming amendments to FINRA Rule 1210 (Registration Requirements). Among other changes, the proposed rule change requires that the Regulatory Element of continuing education be completed annually rather than every three years and provides a path through continuing education for individuals to maintain their qualification following the termination of a registration. Comments are due July 15, 2021. See the Federal Register notice.

The SEC requests comment on FINRA’s proposal to amend Rule 2165 (Financial Exploitation of Specified Adults) to permit member firms to: (1) extend a temporary hold on a disbursement of funds or securities or a transaction in securities for an additional 30-business days if the member firm has reported the matter to a state regulator or agency or a court of competent jurisdiction; and (2) place a temporary hold on a securities transactions where there is a reasonable belief of financial exploitation. Comments are due July 19, 2021. See the Federal Register notice.

FINRA Elections

The annual meeting of FINRA firms will take place on or about Wednesday, September 1, 2021, to elect one Large Firm Governor, one Mid-Size Firm Governor, and one Small Firm Governor to the FINRA Board of Governors. Election Notice 6/4/21 announced the FINRA Nominating & Governance Committee nominees to fill these vacancies, and informed individuals not nominated by the Nominating Committee of the procedures for being included as an additional candidate on the ballot for these elections.
Petitions for candidacy are due July 19, 2021.
 

 Education and Compliance Programs

Register for the virtual Diversified and Carrying & Clearing Member Forum on July 13. Firm Grouping Member Forums are free one-day events designed to provide financial professionals associated with FINRA member firms the opportunity to engage in key discussions with FINRA staff and connect with industry leaders and peers. The forums also include thoughtful discussions around the future landscape of the financial services industry and provide opportunities to meet one-on-one with FINRA Risk Monitoring Analysts, Directors, and Single Points of Accountability to discuss firm-specific questions.

Register for these upcoming FINRA events:

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Regulatory Contacts
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http://www.finra.org/FCS for further information. Requests from executive representatives to be removed from this email notification list cannot be honored.

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